For one full-year Mighty Dog Roofing Reporting Business—typically a franchisee operating multiple Protected Territories—this central-band scenario combines official 2025 Gross Sales medians with an official U.S. specialty-trade sole-proprietor margin benchmark. It is not reported owner profit.
This range is an independent analytical scenario, not an Item 19 financial performance representation by MDR United LLC. It combines identified Franchise Disclosure Document facts with a separate government benchmark and explicit margin sensitivities. Actual results can differ materially by market, number of territories, job mix, close rate, direct costs, subcontractor pricing, labor, advertising, financing, owner involvement, and execution.
Legal franchisor: MDR United LLC. FDD: issued April 20, 2026. Item 19 status: official 2025 Gross Sales and operating-activity data, but no cost, expense, profit, EBITDA, net-income, cash-flow, or owner-compensation disclosure. Population: 70 full-year multi-territory Reporting Businesses operating 277 Protected Territories, plus one separately reported single-territory business. Benchmark: 2023 IRS Statistics of Income for nonfarm sole proprietorships in Specialty Trade Contractors. Checked: July 18, 2026.
Per multi-territory Reporting Business for calendar 2025; revenue, not earnings.
Full-year franchisees included in Item 19 Table 1.
The 70 businesses operated an average of about four territories each.
Net income less deficit divided by receipts for 2023 Specialty Trade Contractor sole proprietorships.
At relevant sales levels after the first 90 days, before fixed technology and service fees.
What does Mighty Dog Roofing Item 19 actually measure?
Officially, Item 19 measures Gross Sales and operating activity—not owner earnings. The applicable period is January 1 through December 31, 2025, and the main population consists of 70 franchisees that operated multiple Protected Territories for the full year. The franchisor states that the figures came from its software system and were not required to follow generally accepted accounting principles.
The FDD defines Gross Sales as revenue generated by a Reporting Business, excluding sales tax remitted to taxing authorities and tips paid directly to subcontractors or other personnel. It does not disclose material costs such as roofing materials, subcontractor charges, payroll, insurance, vehicles, local advertising, royalty fees, technology, working-capital needs, or owner compensation. Therefore, none of the sales figures below can be read as salary, draw, distributions, or take-home pay. See 2026 Mighty Dog Roofing FDD, Item 19, pp. 80–84.
| 2025 Item 19 group | Businesses | Territories | Median Gross Sales per business |
|---|---|---|---|
| Top quartile | 17 | 69 | $3,243,423 |
| Second quartile | 18 | 80 | $1,242,389 |
| Third quartile | 17 | 63 | $776,307 |
| Bottom quartile | 18 | 65 | $324,283 |
Median Gross Sales per multi-territory Reporting Business by Item 19 quartile; the dashed marker shows the $963,683 system median.
Interpretation: sales dispersion is the dominant uncertainty. The top-quartile median was more than ten times the bottom-quartile median, and these are per-business figures for portfolios with different territory counts.
Source: 2026 Mighty Dog Roofing FDD, Item 19, Table 1, p. 82. Quartiles describe observed groups; they are not probabilities or promises.
The official $963,683 system median is a Gross Sales measure. An owner cannot treat it as personal income because the FDD does not show the corresponding direct costs, payroll, operating expenses, franchise fees, financing burden, or owner distributions.
How is the $99,000–$232,000 earnings range calculated?
The range is estimated by multiplying three official FDD revenue observations by a government margin proxy. The conservative case uses the third-quartile median Gross Sales and a 12.7% margin; the base case uses the system median and a 15.7% margin; the upside case uses the second-quartile median and an 18.7% margin. All three apply to a full-year multi-territory Reporting Business, not a single Protected Territory.
The 15.7% central margin equals 2023 IRS net income less deficit of $40.481 billion divided by $257.750 billion of business receipts for nonfarm sole proprietorships classified as Specialty Trade Contractors. The conservative and upside margins are explicit sensitivities of three percentage points below and above that benchmark. The IRS category is broader than roofing, and a Schedule C result blends proprietor labor value with business profit, so the output is best labeled estimated owner-operator benefit.
| Scenario | Official revenue anchor | Margin assumption | Estimated pre-tax owner-operator benefit |
|---|---|---|---|
| Conservative | Third-quartile median Gross Sales: $776,307 | 12.7% | $98,635, rounded to $99,000 |
| Base | System median Gross Sales: $963,683 | 15.7% | $151,353, rounded to $151,000 |
| Upside | Second-quartile median Gross Sales: $1,242,389 | 18.7% | $232,397, rounded to $232,000 |
Estimated annual pre-tax owner-operator benefit, rounded to the nearest $1,000.
Interpretation: the central scenario spread reflects both observed FDD sales variation and uncertainty in the external margin. It does not include the FDD’s bottom- or top-quartile medians, which would widen the possible range substantially.
Sources: 2026 Mighty Dog Roofing FDD, Item 19, Table 1, p. 82; IRS Statistics of Income nonfarm sole-proprietorship tables, tax year 2023. Calculations use full precision and are rounded only for display.
- Included
- Normal business deductions at the aggregate IRS benchmark level, including the benchmark’s reported treatment of business interest and depreciation.
- Not separately deducted
- Royalty, local advertising, technology, and other FDD fees, because the benchmark is an all-in net-income margin and its expense categories overlap with ordinary operating costs. Subtracting every fee again could double count expenses.
- Excluded
- Financing principal payments, personal income taxes, owner-specific entity taxes, capital expenditures beyond benchmark depreciation, and any cash retained in the business.
- Owner labor
- Not separately valued. The IRS sole-proprietor result can include compensation for work performed by the proprietor, so this is owner-operator benefit rather than passive business profit.
Does a hands-on owner earn more than a manager-run owner?
Owner involvement can change cash available, but the FDD does not support a clean manager-wage add-back. Item 15 requires the owner or a principal to devote personal attention, skill, and best efforts to management and operations. A Designated Manager may handle day-to-day operations only after written permission, franchisor approval, and required training. This is not a contractually passive model. See 2026 Mighty Dog Roofing FDD, Item 15, pp. 66–67.
Item 7 adds an important complication: its first-90-day “owner-operated” working-capital estimate already assumes minimum staffing that includes one General Manager and one salesperson, while excluding an owner draw or salary. That means a buyer should not automatically add a full manager salary to the scenario range merely because the owner is active. See 2026 Mighty Dog Roofing FDD, Item 7, pp. 25–31.
The Bureau of Labor Statistics roofing-contractor wage table reported a May 2023 annual mean wage of $108,430 for General and Operations Managers. That figure is useful as a scale for management labor, but it is not a justified automatic deduction or add-back: it excludes employer payroll taxes and benefits, and the FDD/IRS evidence does not reveal whether comparable businesses already carried a manager in their expense base.
A hands-on owner may preserve more cash by performing sales leadership, recruiting, customer follow-up, production oversight, or general management work that would otherwise require paid personnel. But that labor value is compensation for work, not passive profit. A manager-run buyer should obtain actual franchisee payroll structures and compare residual cash flow after the Designated Manager’s full compensation, payroll burden, incentives, and replacement risk.
Which disclosed fees can move owner earnings most?
Royalty and required local advertising are the largest recurring FDD percentages, while technology and support charges create a meaningful fixed base. These are official 2026 FDD obligations for the U.S. offer. The scenario does not subtract them a second time because its margin proxy is all-in; instead, their mismatch with a broad non-franchise benchmark is a primary reason for the Limited confidence rating.
| Recurring obligation | 2026 FDD amount | Earnings relevance |
|---|---|---|
| Royalty | 6% through $1 million YTD; then 5%, 4%, 3%, and 2% at higher tiers; subject to minimums | Direct variable burden; multi-territory tiers use cumulative collected revenue. |
| Local advertising | Greater of $2,000 per month or 5% of monthly Gross Revenue Collected after the first 90 days | Required market spend, separate from the Digital Management Fee. |
| Technology Fee | $692 per month | Fixed recurring cost, subject to change under the FDD. |
| Digital Management Fee | $500 per month | Required digital marketing and website-management charge. |
| Special Software Fee | $300 per month | Required software-platform expense. |
| Accounting and contact center | $499 per month plus stated software/payroll charges; contact center starts at $200–$300 per month plus applicable usage or appointment fees | Fixed and usage-based overhead that can matter more at lower sales. |
Additional required or potentially material costs include annual dues and subscriptions, insurance, vehicle financing or leasing, mapping reports, annual conference attendance, supplier requirements, and possible future Brand Fund contributions. See 2026 Mighty Dog Roofing FDD, Items 6–8, pp. 13–36.
What is the largest unresolved earnings question?
The largest unresolved question is the actual same-brand expense structure by sales band and territory count. Item 19 provides a strong revenue distribution but no Gross Profit, Operating Profit, EBITDA, Net Income, owner compensation, or cash-flow bridge. The external margin benchmark cannot show whether Mighty Dog Roofing’s materials, subcontracting, insurance, local advertising, royalty structure, technology stack, and manager staffing produce a higher or lower margin than the broad industry proxy.
There are also population limitations. Seventy of 71 Reporting Businesses operated multiple territories, so the $963,683 median is not a single-territory unit volume. The separately disclosed single-territory business generated $6,263,187 in 2025, but it is one 2022-launched location and should not be generalized. Item 20 also shows the number of franchised Protected Territories falling from 403 at the start of 2025 to 329 at year-end, with 27 transfers during the year. Those system changes do not prove a profit outcome, but they increase the importance of reviewing closures, transfers, and former-franchisee experience. See 2026 Mighty Dog Roofing FDD, Items 19–20, pp. 80–90.
- Request the written Item 19 substantiation and confirm how each Reporting Business’s territory count changed during 2025.
- Ask franchisees for complete 2025 profit-and-loss statements, not only sales, and reconcile materials, subcontractors, payroll, insurance, vehicles, advertising, royalty, technology, and bad debt.
- Separate owner salary or draw from business profit, distributions, retained cash, depreciation, and interest expense.
- Compare owner-operated and Designated Manager structures using actual fully loaded manager compensation and the owner’s continuing oversight obligations.
- Interview franchisees in the second, third, and bottom sales quartiles, plus transferred and former franchisees listed in Item 20.
- Model financing principal separately and obtain tax advice for the buyer’s entity and jurisdiction; do not convert pre-tax business cash flow into an after-tax promise.
What should a buyer take from the numbers?
The strongest defensible central range is approximately $99,000 to $232,000 per year in estimated pre-tax owner-operatorbenefit for a full-year Reporting Business that usually spans multiple Protected Territories. It is scenario-based, not an official owner-earnings disclosure. The most important driver is Gross Sales combined with direct-cost and labor execution; the largest unresolved uncertainty is the absence of same-brand expense and owner-compensation data. Before relying on the range, a buyer should verify Item 19 substantiation, territory counts, complete franchisee P&Ls, Designated Manager costs, debt payments, and the separation of owner labor from residual business profit.